Theme 1 key terms Flashcards
marketing mix
plan for getting the right blend of product, price and promotion
market segmentation
dividing a market up by characteristics of the consumers to find areas that are unserved
marketing objectives
targets marketing department must achieve
marketing strategy
medium to long term plan for meeting the marketing objectives delivered through the marketing mix
economies of scale
factors that cause cost per unit to fall when a firm operates at a higher level of production
franchise
businesses that sell the rights to the use of its name and trading level of production
generic brands
brands that are so well known that customers say the brand when they mean the product
product differentiation
the event to which consumers perceive your brand as being different from others
bias
a factor that causes research findings to be unrepresentative of the whole population
primary research
first-hand info
secondary research
pre-gathered info
sample size
no of people interviewed
market map
grid plotting where each existing brand sits on scales based on 2 important features of the market
price elasticity
the extent to which a products demand changes when its price is changed
USP
a consumer benefit that no rival can beat
complementary goods
bought in conjunction with each other
inferior goods
sales decrease when people are better off
luxury goods
sales increase when people are better off
normal goods
sales move in line with consumer incomes
seasonal variation
change in the value of a variable thats related to seasons
substitutes
products or services in competition with each other therefore customers will substitute one for the other
market price
price of a product that has been established by the market, where supply = demand
supply chain
suppliers - production and storage - customer
supply curve
line showing the quantity of goods firms want to supply at different price levels
commodity markets
cover undifferentiated products - every kilo is the same
demand curve
a lone showing the demand for a product at different prices
external constraint
something outside of the firms control that can prevent it from achieving its objectives
predatory pricing
pricing low with the intention o driving a competitor out of business
price-elastic
product with demand thats highly price sensitive >1
price-inelastic
product with demand thats not price sensitive <1
negative income elasticity
product where when people are better off sales decrease
positive income elasticity
sakes increase when people are better off
recession
2 or more quarters of negative economic growth
prototype
test model of planned design
sustainability
making something using materials that will still be around for future generations
capacity utilisation
measures the actual usage of facilities as a percentage of max possible
corporate brands
brands that represents the whole company as well as its products
crowd funding
obtaining external finance from many individual small business investors, usually through a web based appeal
loss leader
pricing a product below cost in order to attract further profitable business
price sensitive
when customers demand for a product reacts sharply to a price change
pricing tactics
short-term pricing responses to opportunities
barrier to entry
factors making it hard for new firms to break into an existing market
e-commerce
buying things online
impulse purchase
buying in an unplanned way
opportunity costs
cost of missing out on the next best alternative when making a decision
wholesaler
middleman between producer and retailer
cash cow
high share of a low growth market
dog
low share go a low growth market
portfolio analysis
analysis of market position of the firms existing products
problem child
low share of a high growing market
rising star
high share of a high growing market
labour turnover
no of staff leaving a company as a percentage of the no employed
outsourcing
taking a task and putting it out to a tender
zero-hours contract
agree employee duties and hourly pay rates, yet offer no garuntee of any work in any specific week
hot desk
provides a temporary desk for home-workers to use when they come to the main office
off-the-job training
employees leave their normal place of work in order to receive instruction
on-the-job training
employees acquire or develop skills without leaving their usual place of work
delayering
removing a management layer from the original structure
line manager
manager responsible for meeting specific targets and responsible got specific tasks
matrix structure
staff work in project teams in addition to their responsibilities within their own department and therefore can be answerable to more than one boss
span of control
no. of staff who are answerable directly to a manager
division of labour
subdividing a task into a number of activities, enabling workers to specialise
hygiene factors
everything that surrounds what you do in the job egPay are possible causes of dissatisfaction according to Hertzberg
job satisfaction
sense of wellbeing and achievement that stems from a satisfying job
piece rate
paying workers per piece they produce
productivity
output per person
trade union
organisation that represents interests of staff at the workplace
kaizen
continuous improvement usually achieved by workforce engagement and involvement
quality circles
discussion groups for staff recommending solutions to management
entrepreneur
someone who makes a business idea happen - a risk taker
limited liability
not liable
unlimited liability
are liable
liquidity
ability of a firm to pay its bills on time
overtrading
when a business expands at a rate that cant be sustained
dynamic markets
change rapidly
stable markets
change slowly
product orientation
plays to the strengths of a business
market orientation
focus on customer needs
undiversified demand
putting all your eggs in one basket
real income
change in income excluding the effects of inflation
ESF
ethical sourcing forum
branding
process of creating a distinctive and lasting identity in the minds of consumers
individual brands
associate the identity with one product eg marmite
brand families
associate the identity with a range of products
corporate brands
range of products BUT might not be the main identity
above the line promotion
promotion that cant be controlled by company eg TV
bellow the line promotion
promotion that can be controlled by company eg sponsorship
penetration price
low price set to break into market
skimming price
high price set to yield a high profit margin (has USP)
price leader
large company that sets market price that price takers follow
price takers
small business with no obvious differentiation will have to charge market price
psychological pricing
prices are set to give the impression of value
product lifecycle
show sales of a product over time
extension strategies
aim to prevent decline
redundancy
company/job
dismissal
individual ‘gross misconduct’
collective bargaining
representative of workforce negotiations pay
individual bargaining
single employee negotiations pay with management
trafe off
accepting less of one thing to achieve another
